After suffering a subsidy loss of Rs 32,000 per unit, electric scooter brand Ather Energy has partially absorbed some part of the subsidy loss and has passed on the rest of the burden to its consumers. The decision was based on the company's profitability per individual product and the subsequent possibility of absorbing the respective loss.

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The company has raised the price of its flagship product by Rs 7,000. Chief Business Officer at Ather Energy, Ravneet Phokela told CNBC TV18 that the price hike didn't impact its top product materially but the price of its entry level product has gone up by Rs 25,000 - Rs 30,000.

On the issue about whether the price hike will reduce EV adoption across the industry, Phokela said, "It will be easier for the market to accept and absorb changes from a short term hit and the hike is across the industry". He added that in the medium to long term he doesn't see the market changing dramatically, though in the next 3-4 months there may be a 15 percent-20 percent drop in demand.

Following complaints of overpricing, Ather Energy gave an undertaking to the Ministry of Heavy Industries that it will refund Rs 140 crores to customers who bought the charger separately. Phokela said that the company will take around 6 months to fully refund its customers and while 140 crores is an "unplanned & significant cost", the refund will not impact the company's production and future launch plans.

The company is also likely to take a revenue hit as the company will not be able to sell the EV charger separately and will have to bundle it in the cost of the scooter, to comply with FAME norms. However, the senior executive said that it will take a few months for the company to assess the impact of not being able to sell the charger separately and factoring the price in the overall cost of the vehicle.